How to Start a Restaurant
Many people dream of someday owning and running their own restaurant, despite the fact that most of them have little or no knowledge about how to make that dream a reality. Also of course opening a restaurant is a difficult thing to do in many cases purely because there is often a lot of competition out there in most locations. However when you are intending to open up a new restaurant, there are several important stages that should always be adhered to prior to making any major investments.
Before thinking of looking for premises or ideas for the food etc, the first thing to do is to make a complete business plan, encompassing all of the areas of the business. This should include predictions of all expenditure and costing that the business will need when starting. So things such as renting premises, supplies, staffing etc should all be taken into account. Also the expected levels of business, with research to support these figures is essential as well. From there you can work out how long it will take you to break even and what kind of profit levels you can make per unit and on each item on the menu. Also after you have broken even you can predict how much you can expect to make per annum also.
The first thing to do when looking into a new restaurant is to research the location of the business, and what kind of premises there is locally that would suit. In most cases buying older premises and renovating them is a lot cheaper than having a new building custom built for your needs. This is mainly because often when you buy old buildings that were once restaurants themselves, there is often a lot of useful equipment left over. To this end you might end up saving thousands on things such as the kitchen fittings, layout of the floor space and even bar equipment.
Some locations are simply not good for new businesses due to the amount of competition that you would face there. For example if you are thinking of opening up in a downtown plaza which already has many established restaurants nearby, then finding a lot of business might be a struggle. If by comparison you open up in a smaller town that has a lot of passing traffic however, and only a few fast food places for competition, then finding customers will probably be a lot easier. It is also usually a good idea to make sure that the business that used to be on the premises which you are taking over isn't too similar to the one you are starting. After all if one business failed there, then a similar one is likely to fail as well, particularly with inexperienced owners.
Depending on what kind of restaurant you are thinking of opening, some kind of market research should also be carried out. For example if you are in a small town, then opening a fairly exclusive or niche restaurant is usually not a good idea. On the other hand opening a diner type of business might be a lot more successful. So establishing what kind of customer you are trying to attract to your business is one of the most important things to do before committing anything. For example it is not a good idea to open up a fine dining restaurant with $100 per meal prices in a smaller town that is generally of lower income people. In this case not matter how good the restaurant is, there will simply not be enough customers to make the business work.
The staffing is another important thing that you will need to get right if you intend to succeed, and finding the best staff is often a very difficult thing to do. If you get the right staff, then a lot of the running of the restaurant will take care of itself, and the better your staff are, then the less work you will have to do yourself. The head chef is probably the most important position to look for first, and often good chefs will have different styles and specialties of cooking that they are best at. Because of this it is often a good idea to alter the menu slightly after having appointed a head chef and gotten their input and ideas.
If the premises that you are taking over was formerly a restaurant, or even if you are taking over an existing business and simply changing the name and details, then some of the staff might be easy to find. However if the business is still running before you take it over, then observing the day to day running is often a good idea to make sure that you have a good grasp of the problems and issues facing the business.
Running a restaurant is certainly not something that is suited to everyone, despite what you might think the experience will be like. The hours are often very long, particularly at the start, as well as the stress levels being very high. Keeping everything together as well as doing all the paper work and keeping track of the business and its profits can take a toll on many people. Added to this is the fact that every single night of the week customers will be expected to be greeted and dealt with by someone who is friendly as well as able to resolve any problems that they might have quickly.
Although it is not an option that every prospective restaurant owner might like the sound of, the easier option for a first time venture is often to set up a franchise restaurant. In these cases there is usually a lot more support available for you, as well as things like the menu and advertising being taken care of for you. There is of course less control than with your own business, but the experience is often invaluable to see how a successful business is run. And in most cases making a profit with a chain franchise is a lot easier than being successful with a new business.
